CDIB, Advent team up for coffee deal

The firms have acquired a US-based coffee chain with a network in Asia and aim to expand the business further across the region.

CDIB Capital and Advent International have invested an undisclosed amount in The Coffee Bean & Tea Leaf, a Southern California coffee chain, according to a joint company statement. Mirae Asset Private Equity also took part in the deal.

The founding family will remain shareholders in the company.

Since the company’s founding in 1963, it has grown to 900 stores in about 30 countries, with the majority of its stores in Asia Pacific. However, the firm has identified the potential for further growth in the region. 

Despite there being a wide array of coffee house options in Asia Pacific, private equity has been actively investing in the sector. 

“We have followed The Coffee Bean for many years, tracking in particular its rapid expansion in Asia, and have been

We have followed The Coffee Bean for many years, tracking in particular its rapid expansion in Asia, and have been impressed by the strength of the brand and its connection with its consumer base. We are excited to be a part of this landmark cross border transaction.

HY Kim, managing director, CDIB Capital

impressed by the strength of the brand and its connection with its consumer base. We are excited to be a part of this landmark cross border transaction,” HY Kim, managing director at CDIB Capital, said. 

“Furthermore, we feel confident to be able to assist the company in its continuous Asian expansion.”

Other firms also believe the coffee shop opportunity is ripe. IMM Private Equity recently acquired a majority stake in Holly’s Coffee, a Korean coffee shop chain, for about $100 million after its planned add-on investments, Private Equity International reported earlier. 

Korea’s coffee industry has also grown at an average rate of 30 percent per year for the past 10 years, providing great opportunity for growth-focused private equity firms, according to IMM. 

In 2011, Malaysia-based Creador invested $15 million for a 10 percent stake in OldTown White Coffee, a Malaysian coffee house and instant coffee business with outlets in Malaysia, Singapore, Indonesia and China, PEI reported earlier. 

CDIB is an Asia-based private equity firm with offices in Hong Kong, Shanghai, Taipei, Seoul and San Francisco. The firm was launched in 2006 as an affiliate of China Development Financial, a merchant banking group in Greater China with over $17 billion in assets under management, according to the firm.

Advent is a Boston-headquartered global private equity firm, with $32.4 billion in assets under management. In May, the firm hired two chemical industry professionals to build up its sector expertise and operational team in China, PEI reported earlier. Advent opened a Shanghai office in April after it shut its Tokyo office in 2011 to refocus on emerging Asia.